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Abstract:The article discusses the value of consumption and incomes of the population from the point of view of the theory of J. Keynes as factors determining the aggregate demand. Demand is a vector of economic development, including innovation, and an incentive for the production of competitive goods for the domestic and foreign markets. Assessment of the dynamics of total income and expenses in Russia and Krasnoyarsk region revealed negative trends, ahead of expenses over income. Reduction of investment attractiveness due to reduction of savings required for innovation. The calculated multiplier of Autonomous expenditures providing the value of the equilibrium output of goods and services (the equilibrium gross national product, the gross regional product) is insufficient. As the solution of the problems identified as a result of the study, the authors propose to apply the state regulators necessary to equalize market imbalances by increasing the minimum wage, transfer payments, effective import substitution policy. These measures contribute to the growth of households' propensity to consume goods (services), innovative activity of economic entities.
Keywords:consumption, consumption function, demand, innovative economy, Keynesian approach, offline expense multiplier, savings, total expenditure, total income
JEL-Classification: E12, E17, E21
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